What Do You Need to Know When Buying a Property in Canada
Canada has a thriving expat community, which is expected considering the country's many attractions. Canada is a beautiful location to live, whether you want to enjoy the great outdoors or take on an excellent new business opportunity. Here is the information we gathered on what you need to know before buying a property in Canada.
Can Foreigners Buy Property in Canada?
Non-residents have the same legal rights as residents, and Canada offers a somewhat open-door policy for foreigners wishing to buy property. Some states have specific rules that must be obeyed. Different regulations are depending on your residency. If you are a non-resident, then you should apply to be an immigrant. The laws also differ depending on your nationality. Therefore, it is advised to talk to a lawyer regarding paperwork.
It would help if you also were remindful of the Non-Resident Speculation Tax. The Ontario government implemented the Non-Resident Speculation Tax (NRST) in April 2017. It is a 15% tax on those who aren't citizens or permanent residents of Canada who buy a residential property in the Greater Golden Horseshoe region of Toronto.
How Can You Find the Best Property?
To find a suitable property, you need to get someone who knows the real estate market. Getting a realtor can ease the process. As for establishing a budget, you may want to get a mortgage. Canada Mortgage and Housing Corporation help you to set a budget. When it comes to choosing the best property, there are many options. Apartments, townhouses, and detached options are variable.
Home Buying Costs
In addition to your mortgage, you must pay for upfront expenditures when purchasing a home. Closing costs are what they're called. Closing expenses typically range from 1.5 percent to 4% of the home's buying price. By the time the sale is finished, you should have covered these costs. The overall costs include legal fees, home insurance, land registration, adjustment costs, closing costs, and so on.
What are First Time Homebuyer Incentives in Canada?
Although purchasing a home is one of the most substantial financial purchases you would ever make, there are ways to save money. Check out some of Canada's first-time homebuyer incentives, such as the Home Buyers' Plan (HBP), which allows first-time homebuyers to take out up to $35,000 from their RRSP to put toward a down payment. Other incentives include the $5,000 Home Buyers' Amount, the GST/HST New Housing Rebate, and the Land Transfer Tax Refund for British Columbia, Ontario, and Prince Edward Island.